Small claims across borders: EU consultation

The UK Government has launched a consultation on the new procedure and seeks comments by 27th July.

The proposals, called the European Small Claims Procedure (ESCP), should give people the tools to bring cases in other EU countries or to enforce judgments without worrying about procedural barriers.

It will apply in civil and commercial matters where the total value of the claim does not exceed €2,000. Judgments given under the ESCP will be recognised and enforceable in another Member State without the need for a declaration of enforceability and without any possibility of opposing its recognition.

The proposals, published by the European Commission in March, involve several simplifications:

• Documents shall be served on the parties by registered letter with acknowledgment of receipt (or by any simpler means such as letter, fax or e-mail);
• The procedure shall usually be a written procedure, unless an oral hearing is considered necessary by the court;
• The court may hold a hearing through an audio or video conference or by e-mail and the parties shall not be obliged to be represented by a lawyer;
• The court may determine the means of proof and the extent of the taking of evidence according to its discretion. It may admit the taking of evidence through telephone, written statements of witnesses, and an audio, video or e-mail conference; and
• The judgment shall be immediately enforceable notwithstanding any possible appeal and without the condition of the provision of a security.

"These proposals should make life easier for tourists, travellers and workers, as well as businesses,” said Cathy Ashton, Minister with the Department for Constitutional Affairs. “They will speed up the legal process, help to resolve cross-border disputes and ensure that effective redress is achieved.”

However, the consultation reveals that the Government is concerned about proposals to extend the ESCP to internal as well as cross-border small claims, and about the limit of €2,000, which the Government hopes to make a minimum limit. In England and Wales at the moment, the maximum limit for small claims is £5,000. In Scotland the maximum limit is just £750.